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48
News
consumers to complete transactions online without sharing financial data or
account access.
NACHA selected eWise Systems as the network provider for SVP in the United
States after a successful proof of concept phase.
SVP allows customers to pay for goods and services online by instructing
financial institutions (FIs) to make payments directly to merchants. Unlike
traditional online card payments, for which consumers provide card details
to merchants, SVP keeps private and sensitive cardholder information within
banks or credit unions – beyond merchants' reach.
The technology uses hardware and
software that is already employed
for online banking authentication,
cash management services and
the automated clearing house
(ACH) network.
Surety of payment
Once consumers place items for purchase
into online shopping carts,
they select SVP under payment
type, which redirects customers to
dedicated logon pages at their respective
FIs.
After authentication of user name,
password and funds availability,
shoppers select the pay button and
are redirected back to the merchant
and presented with a receipt and
authorization number.
"It's really a push payment, about
telling my bank to pay the merchant,
keeping personal and account information
from merchants and only
with the FI, which consumers really
like," said Richard Brierley-Jones,
Executive Vice President of eWise.
"Merchants like it because they are
relieved from the business of storing
and protecting account data, and the
bank effects a guarantee of payment.
"The surety of payment is a big factor
for merchants. Obviously it reduces
chargebacks because the bank
or credit union leverages its existing
online banking infrastructure to
authenticate the consumer initiating
the payment."
Acquiring opportunity
Payment processor Metavante Corp.
has integrated its platform with the
SVP switch in order to enable FIs to
authenticate users, present details
of transactions to consumers, debit
customers' accounts and create
ACH origination on behalf of its FI
customers.
Metavante will provide the online
banking systems and technical integration
and work with eWise Systems
to implement SVP for NACHA. The
triadic relationship was formed to